Energy Department Blocks Closure of Power Generation Units

Continued operation of the units is expected to reduce risks of power generation shortfall and electricity outages in the United States.

The Department of Energy (DOE) issued an emergency order on May 31 that directs power grid operator PJM Interconnection to continue running two fossil fuel power generation units beyond their scheduled end date in a bid to safeguard electric grid reliability, the agency said in a May 31 statement.

PJM, which administers the largest power grid in North America, manages the electric system that provides power to 67 million people across 13 states and the District of Columbia.

The emergency order is related to the Eddystone Generating Station, owned and operated by energy producer Constellation.

Located in Pennsylvania, Eddystone is an 820-megawatt power plant. Two of the power-generating units at the facility, which run on oil and natural gas, were scheduled to be retired by May 31.

โ€œ[However,] DOEโ€™s order states that PJM shall, in coordination with Constellation Energy, run specified units at the Eddystone Generating Station, when PJM deems necessary, past their planned retirement date,โ€ the statement reads.

According to the agency, the order was issued โ€œdue to resource adequacy concerns given the timing of the retirement of the generation units coinciding with sustained increased energy demand.โ€

In his March 25 testimony before the House Committee on Energy & Commerce, PJM President Manu Asthana cited growing concerns about the stability of the electric grid.

โ€œThe rate of electricity demand is anticipated to increase significantly in the future due to the development of large data centers in the PJM service area,โ€ he said. โ€œThere have also been increases in demand coming from the electrification of the transportation and heating sectors and from industrial growth.

โ€œThe pace of retirements of existing dispatchable fossil-based resources, largely due to state and federal policies, is clearly outpacing the rate of construction of new resources.โ€

Between 2020 and 2024, 15.896 gigawatts of energy generation sources were deactivated, while only 8.518 gigawatts of energy generation were added.

Asthana said PJMโ€™s interconnection queues are primarily composed of โ€œintermittent renewable resources,โ€ a category that includes solar and wind power.

These renewable sources can only be used at certain times to produce energy while remaining idle or underused for the remaining period. This is unlike sources such as oil or natural gas that can be utilized nonstop for generating electricity.

The DOE stated that the order to continue operating two units at Eddystone Generating Station would minimize the risk of power generation shortfall that could result in unnecessary outages.

โ€œMaintaining access to affordable, reliable, and secure power is always our top priority, particularly during the summer months when electricity demand reaches its peak,โ€ U.S. Secretary of Energy Chris Wright said.

โ€œAmericans should never be left wondering whether they will be able to turn on their lights or air conditioning. This emergency order helps keep money in consumersโ€™ pockets while keeping their homes and businesses fully powered. Energy shortfalls or unnecessary price increases are not options in this Administration.โ€

Byย Naveen Athrappully

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